Facing foreclosure after bankruptcy is often devastating. However, delays in the foreclosure process often provide additional time in your home, allowing you to save for a security deposit on a new place to live. You may also be able to rent your home from your lender, allowing you to stay in your neighborhood while preparing to purchase a new home within a few years.

Bankruptcy and Foreclosure

Bankruptcy provides only limited protections against foreclosure. While filing for Chapter 7 bankruptcy can stall the foreclosure process during the bankruptcy proceedings, which usually takes about four months, mortgage lenders can ask the court to lift the bankruptcy stay so that the lender can proceed with the foreclosure. If the court lifts the stay against the mortgage lender, the lender can begin the foreclosure process after giving you a minimum of 25 days notice. Then the lender can go to court to request the foreclosure. Either way, you are likely to have at least to two to three months before the lender begins foreclosure proceedings.

The Foreclosure Process

The foreclosure process varies by state, and can take a significant amount of time to complete, sometimes a year or more. In fact, in some states, you may be offered a redemption period after foreclosure. During the redemption period, you'll have an opportunity to pay your mortgage balance and reclaim your home from the lender. Another factor in foreclosure times is whether your state's court system has a backlog of foreclosures. A large backlog can cause delays of a year or more.

Eviction After Foreclosure

After the bank completes the foreclosure process, you'll still be able to stay in your home until your local sheriff or other law enforcement agency arrives to physically evict you from the premises. The time between foreclosure and eviction depends on several factors, but it could be months before formal eviction takes place. If the lender wants you out of the home quickly, it may offer you a "cash for keys" deal in which the lender gives you a cash payment in exchange for leaving the home quickly. If you receive a cash for keys offer, get it in writing and leave the home in excellent condition.

Alternatives to Moving

In some cases, you may be able to rent your home from your lender after foreclosure. Contact the lender, or ask your lawyer to do so, and ask if you can stay in your home as a renter. If the housing market is weak in your area, your bank may be willing to offer you a lease. You may, however, have to complete a standard tenant application process before you will be allowed to remain in the home. Expect to be asked to prove that you can make your monthly rental payments.

Avoiding Foreclosure

Talk to your bankruptcy attorney about ways that you can save your home. For example, choosing Chapter 13 bankruptcy allows you to continue paying your mortgage through a court-approved debt repayment plan. If you can make your monthly mortgage payments, you may not lose your home. You can also speak to a housing counselor certified by the US Department of Housing and Urban Development to find out whether you qualify for programs that can assist you in negotiating with your lender.

About the Author

Lainie Petersen writes about business, real estate and personal finance, drawing on 25 years experience in publishing and education. Petersen's work appears in Money Crashers, Selling to the Masses, and in Walmart News Now, a blog for Walmart suppliers. She holds a master's degree in library science from Dominican University.

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Petersen, Lainie. "How Long to Live in a House Before It Is Foreclosed On After Filing Bankruptcy." Home Guides | SF Gate, http://homeguides.sfgate.com/long-live-house-before-foreclosed-after-filing-bankruptcy-100687.html. Accessed 24 May 2019.

Petersen, Lainie. (n.d.). How Long to Live in a House Before It Is Foreclosed On After Filing Bankruptcy. Home Guides | SF Gate. Retrieved from http://homeguides.sfgate.com/long-live-house-before-foreclosed-after-filing-bankruptcy-100687.html

Petersen, Lainie. "How Long to Live in a House Before It Is Foreclosed On After Filing Bankruptcy" accessed May 24, 2019. http://homeguides.sfgate.com/long-live-house-before-foreclosed-after-filing-bankruptcy-100687.html

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